CHAPTER 14: THE AGREEMENT: OFFER AND ACCEPTANCE

CHAPTER 14: THE AGREEMENT: OFFER AND ACCEPTANCE

Learning Objectives: • Objective Theory & Mutual Assent • Requirements for an Offer • Duration of the Offer • Irrevocable Offers • Acceptance Chapter 14 2

BASIC CONCEPTS OF CONTRACT FORMATION

1. Manifestation of Mutual Assent 2. Objective Theory of Contracts a. Old Theory: Subjective Meeting of the Minds b. Today:

Objective Evaluation

of Offer and Acceptance Chapter 14 3

OFFER REQUIREMENTS

1. Definition: Conditional promise made by offeror to offeree 2. Essence a. Act, or b. Forbearance from Acting c. Elements Chapter 14 4

OFFER REQUIREMENTS

3. Element #1:

Present Intent

a. Essence b. Language Used 4. Element #2:

Definiteness

a. Reasons for Elements b. Material Terms c. Gap Filling 5. Element #3:

Communication

Chapter 14 5

OFFER DURATION

1. Power to Accept Until Terminated 2. Methods of Termination of Offer: a. Lapse of Time b. Operation of Law c. Rejection by Offeree d. Revocation by Offeror i.

Action Necessary ii.

Irrevocable Offers iii. Partial Performance Chapter 14 6

ACCEPTANCE

1. Nature of an Acceptance 2. Bilateral Contract Acceptance 3. Counteroffers a. Traditional Rule: Mirror Image b. UCC Provision 4. Silence 5. Communication of Acceptance 6. Unilateral Contract Acceptance Chapter 14 7

CHAPTER 14: THE AGREEMENT: OFFER AND ACCEPTANCE